White House will seek $60.4 billion in aid for Sandy, source says

Dec. 7, 2012

Written by

Brian Tumulty And Malia Rulon

Washington Bureau

The White House asked congressional lawmakers Friday to approve $60.4 billion to help states damaged by Superstorm Sandy, setting up a tense race against time in Congress during its last two weeks of business this year.

The money will be used to help the states “recover, repair, and rebuild better and stronger than before,” the governors of New Jersey and New York said in a joint statement.

“The request is crafted to afford maximum flexibility to state governments and we will continue to work with the administration and Congress as our needs arise,” New Jersey Gov. Chris Christie and New York Gov. Andrew Cuomo said in the statement.

The White House request comes as Congress and President Barack Obama struggle to come up with a deal to avoid the “fiscal cliff” of spending cuts and tax increases set to take effect Jan. 1.

Time is running out to meet that deadline and the deadline to approve Sandy aid. Congress must adjourn at the end of the year before the new Congress is sworn in, and New Jersey lawmakers say the disaster aid must be approved before that happens.

The White House request is less than the $82 billion sought by New York, New Jersey and Connecticut.

Christie had estimated New Jersey would need roughly $37 billion. Cuomo’s estimate for New York was $42 billion. Connecticut had requested another $3 million.

Rep. Frank LoBiondo, a Republican whose southern New Jersey district includes damaged shoreline from Cape May to Atlantic City, said he was “disappointed” with the president’s decision not to request the full amount.

LoBiondo noted that the president saw the devastation in New Jersey firsthand when he visited Brigantine recently.

“We should not shortchange nor add strings to the support residents, businesses and communities in my district and across the region desperately need,” LoBiondo said.

The White House’s 77-page request was sent to House and Senate leaders by Jeffrey Zients, acting director of the Office of Management and Budget. It lists projects that include $15 billion in Community Development Block Grants to help communities with rebuilding and $1.1 million for repairs at three national cemeteries in New York and New Jersey.

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“Current projections are that Sandy is on track to be the second- or third-most costly natural disaster in U.S, history, behind Hurricane Katrina (2005) and close to Hurricane Andrew (1992),’’ Zients said in his cover letter. “While much of this damage is covered by insurance, current estimates suggest that a significant amount of damage is not covered.’’

The White House is requesting an additional $9.7 billion in borrowing authority for the federally backed National Flood Insurance Program to pay flood claims from the storm.

The $60.4 billion request includes $6.2 billion for mass transit repairs outlined by the Metropolitan Transportation Authority, the Port Authority of New York and New Jersey, Amtrak and New Jersey Transit. Amtrak would get an additional $32 million.

Another $3.82 billion would go to the Army Corps of Engineers for flood mitigation projects.

For the most part, the requests are not broken down by state. A $308 million request for highway repairs covers six states. And a $78 million request for restoration of wildlife refuges would go for projects stretching from Maine to Florida.

Obama also issued an executive order establishing a Hurricane Sandy Rebuilding Task Force.

The four senators from New Jersey and New York called the White House request a “very good start.”

“While $60 billion doesn’t cover all of New York and New Jersey’s needs, it covers a large percentage,” said the statement from Democratic Sens. Frank Lautenberg and Robert Menendez of New Jersey, and Democratic Sens. Charles Schumer and Kirsten Gillibrand of New York. “Just as important, there is a great deal of flexibility that better allows us to help homeowners, small businesses, hospitals, beach communities, and localities rebuild, repair and protect themselves.”

Rep. Frank Pallone, a New Jersey Democrat whose district also includes damaged areas on the shore, called the request “a good beginning” and urged colleagues to take up the supplemental package as soon as possible.

“I am optimistic that with this spending package, as well as with future assistance, we will be able to rebuild and regain the sense of normalcy that New Jerseyans so desperately need,” he said.

House Appropriations Committee Chairman Hal Rogers, R-Ky., said the proposal will receive thorough consideration. It was unclear how quickly his committee would take up the bill.

“My committee will consider the White House request for recovery assistance very thoroughly, with an eye toward prioritizing urgently needed recovery efforts that will have the most benefit to the victims of this storm, and determining the federal role in these efforts,’’ Rogers said in a statement.” It is our intent to responsibly provide federal assistance as necessary to ensure that victims and communities can recover, rebuild, and regain normalcy in their daily lives.”